We asked one of our member to share what their experience was like when they chose to open a Tax-Free Savings Account and why they chose to open one. Read on to see what they had to say!
I didn’t know what to expect when meeting with someone at Interior Savings Credit Union to discuss opening a Tax-Free Savings Account. I had heard about these accounts before, but I already had a basic savings account and was investing in my Registered Retired Savings Plan. I thought that was enough to help plan for my family’s future but after doing some research on Interior Savings’ website, I realized I needed to understand the benefits of a TFSA and how it could help me.
Right from the start, Interior Savings answered my first question by telling me a Tax-Free Savings Account is actually more of an investment account than a basic savings account. It’s not just designed for cash but in many cases for long-term strategies including term deposits, stocks, bonds and mutual fund portfolios*. It’s a way for the value of my investments to grow over time, keeping the money I make completely tax-free!
Not only is a Tax-Free Savings Account more flexible than my basic savings account, I’m not even limited to having just one TFSA. In 2021, I can contribute up to $6,000 across my TFSAs or carry forward any unused contribution room. This means I can save for multiple big purchases at once. No more having to decide between renovating the bathroom or finally replacing the family car. I can have separate savings for separate goals.
After Interior Savings helped set me up, I was ready to go. I was a little worried about adding money into my account at first–who knows what could happen down the road? But finding out that I can withdraw cash at any time with no penalty gave me the peace of mind I needed for any future rainy day. I’ve even set up regularly scheduled deposits into my TFSA so I can keep investing with no hassle. Now I can save up for all of my goals, while maintaining control over my investments and ultimately, my future.
Things have been going so well, I even got my wife to speak to an Interior Savings representative to set up her own account. We can contribute to each other’s accounts to make sure we are getting the most out of our investments. I also learned that when I retire, I can pull from my Tax-Free Savings Account to delay taking cash from my Registered Retirement Savings Plan and avoid having to pay tax on those withdrawals. My TFSA will work hand-in-hand with my RRSP so I can help save for the short-term and long-term future.
If I hadn’t learned what a TFSA was capable of, I would have missed out on all of these benefits. I now feel more secure in my investments and more confident in my financial future. I couldn’t recommend opening your own Tax-Free Savings Account more to anyone looking to make the most of their money and their investments.
Thanks Interior Savings.
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*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the prospectus of the mutual funds before investing. Unless otherwise stated, mutual funds and other securities are not insured nor guaranteed, their values change frequently and past performance may not be repeated. Credential Securities is a registered mark owned by Aviso Wealth Inc.